According to the latest weekly report from Bank of America, the entity raised its forecast for the average price of Brent crude oil to $96 per barrel for the last quarter of the year. The global head of raw materials and sources of research services of the entity, Francisco Blanch, highlighted in the report that this increase is due to the recent increase in refining margins, as well as the development of growth from China and cuts in oil production in Saudi Arabia and Russia.
The report also predicted that world oil stocks will drop by 70 million barrels in the next three months. However, Bank of America maintained its forecast that a barrel of Brent will fall in 2024 and stand at $90. This is because the supply of non-OPEC+ oil will increase by 1.2 million barrels per day due to extractions from Guyana, Canada, Brazil and US shale.
The Bank of America warned that the increase in oil volumes could slow down a new rise in the prices of the ‘black gold’ if geopolitics and the decisions of OPEC+ allow it. However, the report also highlighted that another rise in energy prices could fuel inflationary fears around the world, as well as raise interest rates and cause financial turmoil.
In summary, Bank of America raised the Brent oil price forecast to $96 per barrel for the last quarter of the year. The report highlighted the role of refining margins, growth in China and production cuts in Saudi Arabia and Russia in this increase. In addition, a reduction in world oil stocks is expected in the next three months. However, the Bank of America maintains its forecast of a drop in the price of a barrel of Brent in 2024. The influence of geopolitics and the decisions of OPEC+ may determine whether a new price increase of oil can be avoided or if it is generated. and financial turmoil.